Affordability Calculator

A realistic budget in seconds, using the same 28/36 debt-to-income guideline most lenders apply.

Annual Gross Income

Before taxes, including all borrowers

Monthly Debt Payments

Car loans, student loans, credit card minimums

Down Payment

Interest Rate6.5%

Maximum Home Price

$320,561

Monthly Housing Budget$2,217

Estimated Loan Amount$280,561

Down Payment$40,000

Estimate based on the 28/36 lending rule with a 30-year loan, reserving 20% of the housing budget for property taxes and insurance. Lenders also consider credit score, assets, and employment history.

How the 28/36 rule sets your budget

Lenders generally want your housing costs at or below 28% of gross monthly income, and your total debt payments — housing plus car loans, student loans, and card minimums — at or below 36%. This calculator applies both limits, takes the stricter one, reserves a share for taxes and insurance, and converts the rest into the largest loan that payment supports at your rate. Your down payment is then added on top.

Why your number might differ from a lender's

Pre-approvals also weigh your credit score, employment history, and cash reserves, and some loan programs allow higher ratios. Use this figure to set your search range, then pressure-test a specific price with the Mortgage Calculator and budget for fees with the Closing Cost Calculator.

Frequently asked questions

What is the 28/36 rule?

A common lending guideline: spend no more than 28% of gross monthly income on housing, and no more than 36% on total debt payments including housing. This calculator uses these ratios to estimate your maximum home price.

Does a bigger down payment increase what I can afford?

Yes, in two ways. It adds directly to your buying power on top of the loan you qualify for, and reaching 20% down typically removes private mortgage insurance, lowering your monthly cost.

Is this result a pre-approval?

No. It is an educational estimate. Lenders also weigh your credit score, employment history, assets, and current rates, so treat this as a starting budget before talking to a lender.